RS

MEMBER DIARY

The One and Spending — the IMF and Standards and Poor are Correct

The One’s steadfast refusal to cut spending and his tax raising proposals are not the only thing that is driving the spiraling in of the U.S. economy and the value of the U.S. dollar.

No, The One is the trillion dollar President, the spender-in-Chief, and anyone who believes for a second he cares about the deficit or about the Fed’s printing of money or that he will do anything other than massively increase our debt, well, for those people, there is one born every minute.

To those that cannot see it now, that The One is stubborn and will not change, even in the face of massive electoral losses and the loss of the control of the U.S. House. The folks who believe The One’s talk of lowering the deficit are willfully ignoring the facts — primarily that The One keeps increasing the deficit and plans to for the years ahead.

The real reason The One’s spending and refusal to reduce either the deficit or the debt will never end as long as he is the President is not only because he will not stop spending (that is a given), it is because Democrats in the Senate are too liberal or too weak to oppose The One.

The GOP, while controlling only one of two parts of the legislative and none of the executive branch, simply do not have the power to force the Senate Dems and the White House to lower either the deficit or the debt, especially given Obama’s heavy hand on the scale of the Senate and the White House.

And those on Wall Street or Main Street or inside the beltway who believe any different are simply naive.

Without Presidential leadership, a Democratic controlled Senate will never lower the deficit or the debt. Let me give you one example. I was speaking to a senior, multi-term GOP Senator who at times has been both Chairman and Ranking on one of the top Committees in the Senate. He admitted to me that the only time in recent history when spending went down, is because Congress did not know they could spend more, because they did not know tax revenues were spiking higher. This was back in the Clinton years.

It was a complete accident that spending went down, in other words. Had they known, Congress would have spent more, and increased our debt more.

Therefore, based on all known historical evidence, U.S. government spending or the deficit will not go down. In fact, it will continue to go up — even after the super-spending levels The One has insisted on to date.

The Fed will continue to print money to compensate, because they believe they can without consequence. Given the history of the Fed, it is hard to argue with that interpretation of history. The problem now, is simply that things have changed.

The International Monetary Fund which reported the U.S. has lost credibility on controlling government spending and our debt levels also, today, reported the sun rose.

This in turn caused Standards and Poor to report, also, that the sun rose.

It is time to short the dollar, as a Fortune commentator and hedge fund manager wrote today. (It has been that time, for some time.)

As long as The One sits in the White House, the United States will suffer indignity of the McEconomy.

McDonald’s announced they will hire 50,000 employees, which was the lead on CNN yesterday. Oh, the dark horse reason that McDonald’s is hiring, has nothing to do with the economy. It’s that Subway now has more restaurants than McDonald’s, something that simply does not sit well with McDonald’s.

Simply put, continued spending and money printing will destroy the value of the dollar, feed inflation, and cripple the already limping U.S. economy.

And spending will not stop as long as The One sits in the White House, and those handful of Senate Dems who might, possibly, some day, maybe, if the planets align, agree to cut spending will not — because they will not oppose The One, not publicly, not in their voting and not on spending.

Why is Wall Street listening to what the Senate Dems and the White House says, and not watching what they are doing? Perhaps, the news is too hard to contemplate otherwise.